New Delhi: The Supreme Court has sought market regulator SEBI’s response on various petitions related to American short-seller Hindenburg Research’s report on the Adani Group that has alleged financial impropriety.
The court asked SEBI to apprise the court on how to ensure that investors are protected in future.
“There should be mechanism to ensure that Indian investors are protected,” the top court observed.
The top court suggested a committee of domain experts be formed to put in place robust practices to protect investors.
It asked the regulator to explain the existing structure and how to strengthen the regulatory framework.
The SC also sought inputs from the Finance Ministry, as well as SEBI on the existing regulatory framework.
The court was hearing two petitions which sought an investigation into the Hindenburg report.
The apex court posted the matter for Monday, 13 February, asking Solicitor General Tushar Mehta – who was representing SEBI — to get back after instruction from the Finance Ministry.
As it began to hear the petitions, the bench headed by Chief Justice of India D.Y. Chandrachud told Mehta, “This is just an open dialogue. They have brought an issue before the court. What is of concern is how do we ensure the protection of Indian investors. What happened here was short-selling. Probably SEBI is also doing its investigation. Please tell your officers this is not a witchhunt… How do we ensure that going in future, we have robust mechanisms?… What role do we envisage for SEBI?”
On its suggestion to constitute a committee, the SC said: We do not want to cast any doubt on the SEBI or regulatory agencies. But the suggestion is to have a broader thought process so that some inputs can be obtained. And then the government can take a call as to whether some modification is required of the statute, or whether a modification for the regulatory framework is required. Beyond a certain stage, we won’t enter into the policy domain but there should be a mechanism that doesn’t happen in the future.”
Also read: Founder Nate Anderson says Hindenburg has never been banned